This document provides 10 problems involving changes in demand or quantity demanded for various goods and services. For each problem, the reader is asked to determine whether the situation involves a shift in the demand curve or movement along the demand curve, and to graph the situation with arrows indicating the direction and nature of the change. The problems cover scenarios involving changes in prices, incomes, tariffs, celebrity endorsements and new product information for items like automobiles, meats, landscaping plants, food and beverages.
This document provides 10 problems involving changes in demand or quantity demanded for various goods and services. For each problem, the reader is asked to determine whether the situation involves a shift in the demand curve or movement along the demand curve, and to graph the situation with arrows indicating the direction and nature of the change. The problems cover scenarios involving changes in prices, incomes, tariffs, celebrity endorsements and new product information for items like automobiles, meats, landscaping plants, food and beverages.
This document provides 10 problems involving changes in demand or quantity demanded for various goods and services. For each problem, the reader is asked to determine whether the situation involves a shift in the demand curve or movement along the demand curve, and to graph the situation with arrows indicating the direction and nature of the change. The problems cover scenarios involving changes in prices, incomes, tariffs, celebrity endorsements and new product information for items like automobiles, meats, landscaping plants, food and beverages.
1)
Decide
if
there
is
a
change
in
demand
OR
just
a
change
in
the
quantity
demanded
(movement
along
the
demand
curve).
GRAPH
the
item(s)
in
the
parentheses.
2)
If
there
has
been
a
shift
in
demand,
state
the
reason
for
the
shift.
3)
For
each
of
these
problems,
graph
each
situation.
Use
the
arrows
to
illustrate
whether
the
demand
curve
shifts
to
the
right
or
the
left
and
whether
the
quantity
demanded
increases
or
decreases.
1)
The
price
of
gasoline
falls.
(New
automobiles)
2)
The
consumer
income
rises.
(New
automobiles)
3)
The
price
of
pork
falls.
(Pork
and
chicken)
4)
Household
water
rates
rise.
(“Desert
plants”:
drought
tolerant
for
landscaping)
5)
Pick
Up
Stix
prices
to
rise
next
week.
(Pick
Up
Stix
Food)